MicroStrategy (MSTR), a US-based Bitcoin-focused development company, has once again shocked folks in the crypto world with a staggering purchase of 55,500 BTC for US$5.4 billion.

This acquisition, completed over six days ending Sunday, November 24 brings the company’s total Bitcoin holdings to 386,700 BTC, worth nearly US$38 billion at current market prices.

According to a statement released on Monday morning, MicroStrategy paid an average of US$97,862 per Bitcoin in its latest purchase. Across its entire Bitcoin portfolio, the company has spent US$21.9 billion, with an average acquisition price of US$56,761 per BTC. With Bitcoin trading at around US$97,500 at the time of publication, this latest investment highlights the company’s growing confidence in the digital asset.

MicroStrategy’s co-founder and executive chairman, Michael Saylor, has been at the helm of the company’s Bitcoin-focused strategy since it adopted the approach in 2020. Since then, the firm has become the largest publicly traded Bitcoin holder globally, cementing its reputation as a pioneer in corporate cryptocurrency investment.

Financial Moves and Market Impact

The latest Bitcoin purchase follows MicroStrategy’s recent US$3 billion convertible debt issuance, which closed last week. The debt, due in 2029, carries a 0 per cent coupon and a 55 per cent conversion premium, equating to a share price of approximately US$672.40. Despite raising significant debt, MicroStrategy’s stock rose 3.3 per cent pre-market to US$436, reflecting investor confidence in its long-term strategy.

The company’s stock has seen a dramatic rise this year, with a 515 per cent increase that briefly placed it among the top 100 US publicly traded companies by market capitalisation. With the Nasdaq 100 set to announce its annual reranking on December 13, there is speculation that MicroStrategy could secure a place on the prestigious index, further heightening its visibility and credibility.

The Bigger Picture

MicroStrategy’s aggressive Bitcoin acquisition strategy reflects a broader trend of growing corporate interest in cryptocurrency. By leveraging financial tools such as convertible debt, the company has positioned itself as a leader in the digital asset space. However, this risky approach binds its success closely to the volatile Bitcoin market.

As the Nasdaq 100 prepares for its reranking and Bitcoin trades near record highs, all eyes are on MicroStrategy to see how its latest acquisition shapes its future. For now, the company’s crypto-moves may inspire other firms to consider following suit.

With MicroStrategy holding more Bitcoin than some central banks hold in gold, many are waiting to see if these investments will pay off.